On August 31, the balence sheet of Whispering Winds Corp. showed Cash s10,000, Accounts Receivable $2,700,...

 

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On August 31, the balence sheet of Whispering Winds Corp. showed Cash s10,000, Accounts Receivable $2,700, Supples $600, Equipment $6,000, Accounts Payable $4,600, Common Stock $13,950, and Retained Earnings $750. During September, the following transactions occurred. 1. Paid $2,200 cash for accounts payable due. 2. Collected $1,650 of accounts receivable. Purchased additional equipment for $2,150, paying $900 in cash and the balance on account. Recognized revenue of $8,000, of which $2,950 is collected in cash and the balance is due in October. 5. Declared and paid a $1,050 cash dividend. 6. Paid salaries $2,050, rent for September $1,150, and advertising expense $200. 7. Incurred utilities expense for month on account $260. 3. 4. 8. Recelved $12,000 from Capital Bank on a 6-month note payable. Prepare a tabular analysis of the September transactions beginning with August 31 balances. (Ir a transaction causes a decrease in Assets, Labilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability ar Equity item that was reduced. See Illustration 1-8 for example.) Whispering Winds Corp. Assets Liabilities Stockholders' Equity Accounts Notes Accounts Common Retained Earnings Receivable+ Equipment " Payable Cash Supplies Payable Stock Revenues Expenses Dividends Bal 1. 2. 3. 4. 5. 6. Salaries and wages expense Rent expense Advertising expense 7. B. Prepare an income statement for September. On August 31, the balence sheet of Whispering Winds Corp. showed Cash s10,000, Accounts Receivable $2,700, Supples $600, Equipment $6,000, Accounts Payable $4,600, Common Stock $13,950, and Retained Earnings $750. During September, the following transactions occurred. 1. Paid $2,200 cash for accounts payable due. 2. Collected $1,650 of accounts receivable. Purchased additional equipment for $2,150, paying $900 in cash and the balance on account. Recognized revenue of $8,000, of which $2,950 is collected in cash and the balance is due in October. 5. Declared and paid a $1,050 cash dividend. 6. Paid salaries $2,050, rent for September $1,150, and advertising expense $200. 7. Incurred utilities expense for month on account $260. 3. 4. 8. Recelved $12,000 from Capital Bank on a 6-month note payable. Prepare a tabular analysis of the September transactions beginning with August 31 balances. (Ir a transaction causes a decrease in Assets, Labilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability ar Equity item that was reduced. See Illustration 1-8 for example.) Whispering Winds Corp. Assets Liabilities Stockholders' Equity Accounts Notes Accounts Common Retained Earnings Receivable+ Equipment " Payable Cash Supplies Payable Stock Revenues Expenses Dividends Bal 1. 2. 3. 4. 5. 6. Salaries and wages expense Rent expense Advertising expense 7. B. Prepare an income statement for September.